Which of the Following Statements Regarding Quantity Discounts Is Most

question 258

Multiple Choice

Which of the following statements regarding quantity discounts is most accurate?

• A) Noncumulative quantity discounts encourage large individual purchase orders, not a series of orders.
• B) Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts.
• C) Quantity discounts are primarily used to undercut competitors' prices.
• D) Noncumulative quantity discounts encourage smaller long-term repeat purchases rather than less frequent larger short-term purchases.
• E) Quantity discounts can basically be used only once with each reseller or the price will increase.

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Definitions:

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International Accounting Standard 34, providing guidelines on interim financial reporting to ensure timely and reliable disclosures.

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Routine or regular maintenance carried out on equipment or facilities to ensure their efficient operation and to prevent breakdown or failure.

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